LIBERTY — Amite County’s tax assessor and collector clarified information Wednesday about a state fund that reimburses counties for car tag sales.
Speaking to the county board of supervisors, Jennifer Lindsey said a state tax credit given to counties to supplement the cost of car tags is running low this month. The county should still get the same level funding that it has in the past. The only question is when.
The state Legislature in the 1990s reduced the price of car tags, and raised the sales tax on vehicles to 5 percent to help counties make up the difference on car tag revenues.
Lindsey said fewer new car sales have contributed to a deficit in the state fund, but she said the State Tax Commission indicated the county would still receive its share of the funding — just not this month.
The county tax assessor’s office should have received $91,000 from the legislative credit this month but only received $80,000. The total car tag funds that should have been settled with Amite County was $124,000, including proceeds generated at the county courthouse.
“It will affect counties like us with a low millage rate. If we don’t have this credit, it would double and quadruple the cost of car tags,” Lindsey said. “In Pike County, it would go up by one-third.”
Amite County’s millage rate is 68.93.
Pike County’s, by comparison, varies from 87.84 to 154.14 mills. Additional taxes levied for school districts and municipalities affect overall millage rates, which are used to calculate the price of car tags.
Pike County Tax Assessor Joe Young said every county received 88 percent of what they were supposed to.
Pike County’s legislative tax credit was short $20,000.
“What we’re hoping is the Legislature will put some funds in the legislative tax credit fund to pump the fund up until it can catch up,” Young said.
